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Growth rate in exports of apparel tapers, textile increases

15
Oct '08
The latest data released by Customs show that China's textile and apparel exports totaled US $136.94 billion in Jan-Sept 2008, a year-on-year increase of 8.12 percent, though off course export growth was not near the one achieved in the same period last year.

Amongst them, textile exports amounted to $49.86 billion; garment exports reached $87.08 billion, representing a growth of 21.34 percent and 1.76 percent, respectively, over the same period last year but up by 7.14 percent and down by 21.24 percent respectively from the growth rate of the same time last year.

In September alone, China's exports of textiles and garment registered US $18 billion, a fall of nearly $600 million from the previous month, or a drop of 3.18 percent but a small year-on-year increase of US $3.1 billion or 1.75 percent.

The overall export growth rate still stayed at low ebb, September exports of textile yarn fabrics and products stood at $5.945 billion, up 13.67 percent from the same time last year while shipments of clothing and accessories were US $12.055 billion, a year-on-year decrease of 3.25 percent.

U.S. dollar gained in strength in August though Yuan appreciation against U.S. dollar continued to slow down in speed. Coupled with the increase in export tax rebate rate and the implementation of favorable trade policies, proved to be a blessing for disadvantaged enterprises.

However it has been reported that some small and medium sized clothing enterprises in to manufacturing of low-value-added products hold huge inventories due to which they are facing liquidity problems.

Industry analysts believe that China's textile and garment industry heavily depends on foreign markets and a further deterioration in growth in exports can be expected, if the economy in the United States continues to worsen.

The after effects of the turmoil in the US are now being felt in Europe which has continued to give very good business to exporters in China and is the number-1 destination for textile and garment industry in China.

Exporters are hoping that Europe will continue to provide the same amount of business which it has been doing so in the since the last nine months.

Fibre2fashion News Desk - China


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